Facts of the Case: In this case, the petitioner and its associate entered into a Joint Development Agreement (JDA) with landowners for developing a real estate project. Under the arrangement, the developer undertakes construction on the land owned by the landowners, who, in turn, receive a share of the developed property in lieu of granting development rights to the developer.

The developers challenged the demand before the Bombay High Court, contending that the transaction essentially involved the transfer of land, which is specifically excluded from the ambit of GST under Schedule III, Entry 5 of the CGST Act, 2017. The High Court, however, declined to stay the demand, observing that the petitioners should first avail the statutory appellate remedy under Section 107 of the Act.

Aggrieved, the developers approached the Supreme Court by way of a Special Leave Petition (SLP).

Issue: Whether the transfer of development rights by a landowner to a developer under a Joint Development Agreement (JDA) constitutes a taxable supply of service under GST, or is excluded as a transfer of land outside the scope of GST law.

Held that: The Supreme Court Bench through its order dated 13.10.2025, stayed the operations of the assessment order dated 27 January 2025 passed by the CGST & Central Excise, Nashik-I Division against the petitioners.

The Supreme Court’s intervention has revived the debate on the taxability of JDAs under GST. The developers’ core contention is that taxing the grant of development rights results in double taxation, since GST is again levied when the constructed units are eventually sold.

Case Name: ARHAM INFRA DEVELOPERS AOP vs. UNION OF INDIA & ORS. dated 13.10.2025

To read the complete judgement 2025 Taxo.online 2782